US targets China’s telecoms grip in Venezuela with new sanctions carve-out

The United States is strategically opening Venezuela's telecommunications market to new investment and technology, while pointedly excluding Chinese firms. The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) issued two general licenses on Friday, easing some sanctions on the sector. This allows for transactions involving state-owned CANTV and mobile operator Movilnet.

However, these licenses explicitly prohibit any dealings with individuals or companies from China, Russia, Iran, North Korea, and Cuba, or entities linked to them. This mirrors a broader U.S. strategy of selectively easing sanctions on Venezuela without benefiting geopolitical rivals like China. Similar restrictions have previously been applied to Venezuela's oil sector.

The U.S. Treasury did not immediately provide a specific rationale for excluding Chinese companies or detail whether the measure is intended to curb China's influence in Venezuela's telecommunications infrastructure. Neither the Chinese embassy in Washington nor the Treasury Department immediately responded to requests for comment on the new policy.